Are you ready to take your business to the next level but find marketing terms confusing? We’re here to help! Let’s define some common marketing abbreviations you may find in our agency’s reports, business articles and more.
Key Marketing Abbreviations & Definitions
BR: Bounce Rate
A website’s bounce rate is the percentage of website visitors who leave after only viewing one page, and not taking additional actions. This could include, clicking on a link, navigating to other pages on the website, etc. To calculate it, divide the number of visitors who bounced by the total number of visitors.
CAC: Customer Acquisition Cost
A metric that measures the cost of acquiring a new customer. It is calculated by dividing ad spend by the number of new customers acquired during a specified time period.
CLV/CLTV: Customer Lifetime Value
The estimate of the total revenue a business can expect to receive from a customer over the course of their relationship. It is calculated by customer value multiplied by their average lifespan.
CPA: Cost-per-Action
A metric that measures the cost of a user taking a valuable action. This could include a purchase, a phone call, filling out a form, etc. It is calculated by dividing that total cost by the total conversions. (See also CPL)
CPC: Cost-per-Click
A metric that measures the cost of each click on an ad in a paid advertising campaign. It is calculated by dividing the total campaign cost by the total number of clicks.
CPL: Cost-per-Lead
A metric that measures the cost of acquiring leads in digital marketing by dividing the total cost of a campaign by the number of leads generated. (See also CPA)
CRM: Customer Relationship Management
Programs or software that help companies keep track of their customer database including existing and potential customers.
CTA: Call to Action
The part of an advertisement that prompts a viewer to take an action. This could include a link, button, image, download, etc.
CTR: Click Through Rate
The percentage of people who click on a marketing campaign based on the number of impressions.
CVR: Conversion Rate
The percentage of a website’s visitors who complete a desired action. Outcomes could include, but are not limited to; making a purchase, filling out a form, making a phone call, etc.
It is calculated by conversions divided by the number of visitors.
GA: Google Analytics
A Google service that generates detailed statistics about website traffic, sources, conversions, sales & more! Have you transitioned to GA4 yet?
KPI: Key Performance Indicator
A value or metric that helps organizations track and evaluate progress towards specific business objectives or goals.
MOM: Month Over Month
The change of a specific metric from one month to the next. Generally used in reporting to show growth and measure KPIs. (See also YOY)
PPC: Pay-per-Click
A digital advertising campaign where advertisers pay a fee each time their ad is clicked.
ROAS: Return on Average Spend
A metric that measures the efficiency of a marketing campaign. It will show the revenue gained for each dollar of ad spend. It is calculated by dividing the total campaign revenue by its total cost.
ROI: Return on Investment
A metric that shows the profitability and efficiency of an investment, or marketing effort. It is calculated as the gain from the investment, minus the cost of the investment, divided by the cost of the investment.
SEO: Search Engine Optimization
The practice of optimizing a website's content and structure to improve its visibility and ranking on search engines like Google, Bing, and Yahoo.
USP: Unique Selling Proposition
The factor that makes a product or service stand out from competitors. This could include features, quality, price, etc.
UV: Unique Visitor
A single person who may visit the same website multiple times over a defined period of time.
YOY: Year Over Year
The change of a specific metric from one year to the next. Generally used in reporting to show growth and measure KPIs. (See also MOM)
YTD: Year to Date
The time period from the beginning of the year, until the current date. (See also MTD)
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